Slovakia and Czech Republic implement social and pension reforms

Significant changes to social benefits and pension systems are being implemented in the Czech Republic and Slovakia.

In Slovakia, a new parental pension system has replaced automatic payments with a tax allocation model. Starting in 2025, children can allocate 2% of their tax to a parent, provided the parent is of retirement age. The first payments under this system arrived in 2026, though some recipients have reported administrative delays and discrepancies in payments. Additionally, Slovak lawmakers have proposed increasing the birth grant for the first four children to 1,000 euros, effective January 2027.

In the Czech Republic, the government has approved pension adjustments for 2027. This includes a regular indexation, a one-time 2,000 CZK contribution, and a proposed increase of 500 CZK for seniors aged 80 and older. Minister of Labour and Social Affairs Aleš Juchelka noted that these measures aim to address the gap between pension growth and wage increases. Furthermore, working retirees in the Czech Republic can benefit from a 6.5% social security premium discount if they meet specific criteria. Changes to the living minimum are also scheduled for October 2026 to adjust for economic conditions.